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How the Joint Equity sale process works

 Comparison between Joint Equity & Traditional Sales?

Flat A is valued at                           £125,000

 Traditional sale method

The Buyer buys 100% of the equity   £125,000

Income to

Vendor                            £125,000

However, the buyer needs :

• a deposit and fees of £8,500 and

• a salary of at least £29,687 for the mortgage.

They may not have either or both.

 Joint Equity sale method

The Buyer: 50% equity                        £65,000

Investor-Partner: retains 50% equity     £65,000

 The total value  is still                       £125,000

– the same as traditional sale but the Investor Partner has £65,000 cash for reinvestment and £65,000 equity for future growth.

But, with Join Equity the buyer (the Owner Partner) only needs:

• a deposit and fees of £7,400,
• and a salary of only £14,625.

Which is a :

• 13% saving on deposit and fees

• 50% lower salary requirement

This simple comparison demonstrates how the Vendor can make their property financially attractive and available to the widest possible audience, as well as how the social  affordability criteria are achieved.